Your client has been given a trust fund valued at $1 million. She cannot access the money until she turns 68 years old, which is in 12 years. At that time, she can withdraw $30,000 per month. If the trust fund is invested at a 7 percent interest rate, how many months will it last your client once she starts to withdraw the money?
A) 77.05 months
B) 81.05 months
C) 99.05 months
D) 119.05 months

Question

Quizplus · Accepted Answer

The future value of the trust fund after 12 years at 7% interest is calculated, and then the number of months it will last with $30,000 monthly withdrawals is determined. The correct calculation shows it will last approximately 99.05 months.

Your Client Has Been Given a Trust Fund Valued at $1